Commodity Market report

 Gold: Gold  hit 3 month  highs  on Wednesday,  buoyed  by  a  slower  U.S. services sector and sinking dollar, prompting investors to seek shelter in assets perceived as safer as future Fed rate hikes appeared less possible.
U.S.  services  sector  activity  slowed  to  a close to 2 year  low  in January,  suggesting  that  economic  growth  weakened additional  at  the begin  of  the first quarter.

Silver: Silver was up 2.3 percent at $14.62 an ounce. 

Activity within the huge U.S. services sector slowed to a close to 2 year low in January, suggesting  that  economic  growth  weakened further  at  the  start of the first quarter even as the market place remains resilient.

Crude Oil: Oil costs jumped 8 percent higher on Wednesday, snapping a 2-day rout, after investors took advantage of a weaker U.S. dollar and shrugged off information showing an sudden massive surge in U.S. crude inventories to record highs.

Natural Gas: U.S. natural gas futures listed among a few cents of unchanged on Wednesday because the market took a possibility when collapsing twelve percent over the prior two days on mostly steady weather forecasts.

Oil prospects drop for third session on rising rough stocks, oversupply

Oil futures extended losses into a third session in Asian trade on Wednesday, as U.S. crude stocks last week surged to more than half a billion barrels and as Iran plans to boost exports from March.

Milder weather forecast for the last eight weeks of the U.S. November-March winter heating season has also dampened demand hopes.

Brent for April delivery (LCOc1) had dropped 25 cents to $32.47 a barrel as of 0204 GMT (9:04 AM EDT), after settling down $1.52, or 4.4 percent.

U.S. crude, also known as West Texas Intermediate (WTI) (CLc1), fell 27 cents to $29.61, after ending the previous session down $1.74, or 5.5 percent.

"Oil prices are coming off again. Prices are going to zig-zag for a while," said Tony Nunan, oil risk manager at Mitsubishi Corp in Tokyo.

U.S. crude stocks rose by 3.8 million barrels to 500.4 million in the week to Jan. 29, data from industry group, the American Petroleum Institute showed on Tuesday.

Weekly inventory data from the U.S. Department of Energy's Energy Information Agency is due later on Wednesday.

"The (global) inventory situation is going to get worse in the second quarter as we hit the peak refining rate at the end of this quarter," Nunan said.

"(But) this has been so well documented that its been built into prices. I do think we're close to the bottom and the bottom in prices will be this quarter."

Nunan forecast Brent would trade in a $25-$35 a barrel range in the first quarter and then slowly recover over the rest of the year.

Crude stocks at the Cushing, Oklahoma, delivery hub rose by 141,000 barrels, the API said.

The increase led to renewed fears of overflowing oil tanks at the key U.S. storage hub, causing the spread between prompt and forward U.S. crude oil futures to slump to an 11-month low.

"The U.S. crude inventory is already at the highest levels since (the) 1930s," ANZ analysts said in a note on Wednesday.

Traders fear that filling tanks to the brim could cause the next leg of a rout on distressed selling.

Meanwhile, Iran is aiming for crude exports of 2.3 million barrels per day in the fiscal year beginning on March 21, the managing director of the National Iranian Oil Company was quoted as saying on Tuesday.

That is higher than the 1.44 million bpd Iran is expected to export in February and 1.5 million bpd in January, according to data on Iran's preliminary tanker loading schedules.

Russia is ready to implement further cooperation in the oil market with OPEC and non-OPEC countries, Russian Foreign Minister Sergei Lavrov said on Tuesday.

Oil falls on China monetary troubles, rising OPEC supply

Oil costs fell for a brief moment session in Asian exchange on Tuesday as stresses over top vitality purchaser China and rising oil supply weighed on business sectors, albeit conceivable talks in the middle of OPEC and Russia on generation cuts offered some backing.

Brent for April conveyance (LCOc1) dropped 46 pennies to $33.78 a barrel starting 0146 GMT (8.46 p.m. ET) in the wake of settling down $1.75, or 4.9 percent, in the past session.

The front month contract for West Texas Intermediate (WTI) (CLc1) was down 49 pennies at $31.13 as in the wake of falling $2.00, or 5.9 percent, in the past session.

In spite of the decays, U.S. unrefined is still almost 19 percent over the over 12-year low of $26.19 hit in mid-January.

"(Costs) have recently returned to reality a bit, in spite of the fact that they are holding water above $30 a barrel," said Ben Le Brun, market examiner at Sydney's OptionsXpress, indicating worry over rising oil supplies and weaker monetary information.

Oil costs could push underneath $30 a barrel again if financial specialists saw trusts blurring of an arrangement between individuals from oil makers cartel OPEC and Russia on generation cuts, he said.

Russian Energy Minister Alexander Novak and Venezuelan Oil Minister Eulogio Del Pino talked about the likelihood of holding joint counsels in the middle of OPEC and non-OPEC nations soon, the Russian Energy Ministry said on Monday.

Be that as it may, Goldman Sachs (N:GS) said it was "very far-fetched" OPEC makers would co-work with Russia to cut oil yield, while additionally acting naturally vanquishing as more grounded costs would bring beforehand racked creation back onto the business sector.

Rough costs fell after China's acquiring supervisors file dropped to a three-year low in January, combined with rising oil supplies, ANZ said in a note on Tuesday.

"Rising supply likewise proposes further drawback danger to fleeting costs. Yield from OPEC rose to 33.1 million barrels for every day a month ago as Indonesia's participation to the gathering was reactivated," the note included.

Financial specialists are tending to a huge number of monetary information, including U.S. non-ranch finance and unemployment figures and maker costs from the Eurozone, to give oil advertises further heading, Le Brun included.